Think It’s Too Late to Buy This Leading Industrials Stock? Here’s the Biggest Reason Why There’s Still Time
Industrial Giants Defy Market Gravity—Here's Why Timing Isn't Everything
The Late Entry Paradox
Conventional wisdom screams 'missed the boat' when a stock's been climbing—but industrial titans operate on a different playbook entirely. These aren't meme stocks; they're infrastructure bedrock.
Cash Flow Machines Don't Care About Your FOMO
While retail traders chase pumps, industrial leaders compound value through contracts measured in decades, not days. Their revenue streams look more like rivers—deep, predictable, and damn near unstoppable.
The 'Boring' Advantage
No flashy NFT partnerships or metaverse pivots here—just factories, logistics networks, and equipment that keeps the global economy actually functioning. Turns out building real things generates real profits.
Wall Street Still Doesn't Get It
Analysts remain obsessed with quarterly earnings calls while missing the multi-year infrastructure boom quietly unfolding. Their loss—your opportunity.
Timing perfection is for day traders; building wealth is for those who recognize value even when it's not trending on Twitter. Sometimes the best move is buying what everyone thinks is 'obvious'—right before it becomes obvious to everyone else. Besides, if hedge funds could time markets, they wouldn't need 2-and-20 fees to stay solvent.
Image source: Getty Images.
Vertiv's quiet growth burst
The table below shows the progression of its full-year guidance in 2025. Vertiv's sales guidance outstrips its adjusted operating profit increases. Profit growth is lagging sales growth due to extra costs associated with tariffs and the pull-forward of investment in research and development to fuel growth.
|
Sales guidance |
$9.125 million to $9.175 million |
$9.325 million to $9.575 million |
$9.925 million to $10.075 million |
8.7% |
|
Adjusted operating profit |
$1.910 million to $1.960 million |
$1.885 million to $1.985 million |
$1,950 million to $2.030 million |
2.8% |
|
Free cash flow |
$1.275 million to $1.325 million |
$1.250 million to $1.350 million |
$1.375 million to $1.425 million |
7.7% |
Data source: Vertiv, author's analysis. *All figures calculated assuming the midpoint of guidance.
In usual circumstances, it's reasonable to expect a company's operating profit to expand more than its revenue growth. Margins should improve in a manufacturing company when it has larger volumes due to the benefits of scale, such as increased production efficiency and lower fixed cost per unit production.
However, provided the tariff environment doesn't worsen for Vertiv, future orders and revenue increases are likely to translate into significant increases in profits and cash flow.
Where next for Vertiv?
Momentum continues to build in the data center end market, driven by torrid growth in artificial intelligence application demand. As such, Vertiv is in the early innings of a multi-year expansion in data center spending, and that includes its involvement in developing power systems and solutions for the next generation of data centers with Nvidia.
Vertiv has a bright future, and it's not too late to invest in it.
